Before any public offering of securities and prior to any listing on a regulated market, a prospectus must be published in accordance with the listing requirements. It must be noted in the view of the marketing financial services for a security or financial instrument shall be construed as a public offering and thus can trigger the prospectus requirement.
The prospectus is drafted by accounting, investor relations, legal and tax departments of the issuing company in collaboration with one or more investment banks, specialized law firms or accounting firms – depending on the product and placement form. Any incorrect or incomplete information about relevant risk factors, can be used as a basis for civil liability .
The preparation of a prospectus for an initial public offering (IPO) is very complex, time consuming and costly. The costs vary a lot depending on product placement and structure.
